About WellsFargoretirementplan.wellsfargo.com
Wells Fargo & Co. (NYSE: WFC) is a diversified financial services company in the United States with operations around the world. Wells Fargo is the 5th largest bank in the US by assets and the 9th largest bank in the world by market cap. It is the only bank in the United States to be rated AAA by S&P.
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| WellsFargoretirementplan.wellsfargo.com
Is the website of Wells Fargo's Retirement Income portal.
Today, Social Security provides only about 40% of the average retiree's income. Moreover, that amount could shrink in the future.
During the next several decades, 76 million Baby Boomers will retire, squeezing the Social Security system's ability to pay out benefits. Employer pension plans help some retirees.
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There may be some glorious days ahead-the days of your retirement. No longer confined to the rigors of the workaday world, you can spend your time doing what you want to do. Don't, however, expect everything to fall magically into place. Like most things in life, you'll get the most from retirement by planning.
Start by thinking about how you will replace your work routine with a retirement routine. Before the last day on your job, have an idea of how that first day of retirement will be filled. You don't want to start this new phase of your life wondering what you'll do. Take some time to think about your lifestyle and how you're going to adapt.
If getting up early for work has always been drudgery, plan for a leisurely beginning to your day. If sitting at a desk all day was against your nature, now is the time to let your active self take over. Just remember, you don't have to rush like you did to catch the train or beat the traffic! The goal is to get the most out of a precious resource-your time.
Get Your Financial House in Order
Without adequate financing, many of your retirement dreams may remain just that-dreams. So before you finalize retirement plans, you may want to consider professional assistance. To get a complete picture of your financial resources, include Social Security, pensions, Individual Retirement Arrangements (IRAs), 401(k) plans, savings and any other investments in your equation. Then talk to a professional about how best to allocate those resources and get an idea of how much income your investments will generate.
Also, if you're expecting a lump-sum payment from your retirement savings plan, be prepared to make the choice as to how you will handle it. The reality is that you'll have to share some of this money with Uncle Sam. However, how well you understand your options for managing this money, and how well you've planned, will determine how much you actually end up with. Basically, you can:
- take the money up front and pay tax on the entire lump sum (special tax treatment may be available); or
- continue deferring by arranging to roll over your entire lump sum directly into an IRA or annuity, in which case you will pay taxes later as you receive distributions.
Evaluate the costs of the retirement lifestyle you envision. Think about added expenses-for example, health insurance if your retirement plan doesn't provide it. And be sure to figure in taxes-unfortunately, they don't stop just because you stopped working. Think of this exercise as a reality check. You're sure to feel more comfortable with the retirement decisions you make after doing all the math.
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